India’s trade relationship with the United States continues to strengthen, as evidenced by a notable increase in merchandise exports and imports between the two nations. From April to September 2026, India’s merchandise exports to the US rose by 11.1%, reaching $50.81 billion compared to $45.73 billion during the same period last year. Meanwhile, imports from the US surged by 26% to $32.33 billion from $25.66 billion, according to data from India’s Ministry of Commerce and Industry.
Despite this growth, India’s trade surplus with the US narrowed to $18.48 billion, down from $20.07 billion in the previous year. The United States maintained its position as India’s largest export destination in the first half of the financial year, indicating the significance of this bilateral trade partnership.
Negotiations for an India-US trade agreement are making positive strides, with both nations working towards finalizing and signing a deal. Commerce Secretary Rajesh Agrawal highlighted that while progress is being made, the finalization of the agreement will partly depend on developments in the broader US tariff framework, particularly the ongoing process under Section 301. This framework is crucial as India seeks preferential access to the American market to enhance the competitiveness of its domestic exporters.
The proposed trade agreement aims to improve market access and strengthen the trade relationship between the two countries by addressing existing tariff-related challenges. Both sides are keen on concluding the deal swiftly to bolster economic ties and foster mutual benefits.